Hugo Llewelyn, CEO of Newcore Capital, recently contributed to Beth Mattson-Teig's article in the October issue of Institutional Investing in Infrastructure (i3), emphasising the need for a genuine approach to sustainability to attract capital and achieve results, noting that sustainable investing is increasingly essential for effective risk management, especially concerning long-term environmental issues.
The article discusses the increasing importance of environmental, social, and governance factors in infrastructure investment, highlighting a significant 75% rise in participation in the GRESB Infrastructure Assessment over the past five years. In 2023, 172 funds reported on 687 global assets valued at over $1.2 trillion. While some fund managers are leading in ESG practices, others are being pressured by investors and regulatory changes. Despite facing economic and political challenges, including anti-ESG sentiment, demand for sustainable strategies remains strong, particularly from institutional investors like pension funds.
In the article Hugo also notes a more scientific approach to sustainability measurement, with property companies now capable of accessing precise data on their environmental impact, particularly regarding carbon emissions and waste. Fund managers are increasingly able to quantify efficiency gains, tracking energy and water usage to demonstrate payback periods on investments and access to lower-cost sustainable financing.
Read the full article here - https://lnkd.in/e-pVD5wD
#ESG #impact #socialinfrastructure
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